Latest news with #NortheastAlliance
New York Post
29-04-2025
- Business
- New York Post
Struggling JetBlue in talks on partnership with United Airlines: report
JetBlue Airways and United Airlines have been negotiating a partnership, three industry sources familiar with the matter told Reuters. The New York-based airline has been seeking partnerships after a federal judge blocked its so-called Northeast Alliance with American Airlines in 2023. The partnership with United is envisioned as quite different from the NEA, the sources said. While the alliance is expected to focus on providing greater connectivity to customers and allowing them to earn and burn frequent-flier miles, the two carriers will not coordinate on schedules and pricing, they added. Advertisement 3 JetBlue has been seeking partnerships after a federal judge blocked its so-called Northeast Alliance with American Airlines in 2023. Christopher Sadowski The sources said the two airlines have yet to finalize all the details and cautioned that things could still change. Asked for comment, a JetBlue spokesperson referred to remarks made earlier on Tuesday by the airline's president, Marty St. George, on a conference call after the company released quarterly results. Advertisement St. George told analysts and investors that the company was negotiating with a domestic airline with a larger network and that an announcement was expected in the current quarter. He did not elaborate. Chicago-based United said it does not comment on industry speculation. JetBlue has been struggling to return to sustained profitability after the COVID-19 pandemic. It has managed to post a profit in just two of the past nine quarters. Its shares have fallen about 47% this year. In a sign of bearish investor sentiment, short interest in the company's shares has risen by 35% since early February. Advertisement 3 The alliance is expected to focus on providing greater connectivity to customers and allowing them to earn and burn frequent-flier miles, the two carriers will not coordinate on schedules and pricing, they added. REUTERS A slump in travel demand as a result of the economic uncertainty caused by President Trump's trade war has only exacerbated its pain. Earlier on Tuesday, JetBlue withdrew its outlook for 2025. Growth in its revenue generated from customer loyalty programs, aided by new partnerships, is currently one of the airline's few bright spots. The company is relying on alliances with other airlines to bolster that revenue stream by offering customers greater connectivity. It had also been discussing a new partnership with American Airlines. But the two sides failed to reach an agreement and the Texas-based carrier has filed a lawsuit seeking damages after the collapse of the NEA, American's vice chair, Steve Johnson, said in a letter to employees on Monday. Advertisement 3 JetBlue has been struggling to return to sustained profitability after the COVID-19 pandemic. It has managed to post a profit in just two of the past nine quarters. Getty Images JetBlue's falling market capitalization has also led to speculation that it could become a potential acquisition target. In January, following market talk that United was considering a bid for JetBlue, the Chicago-based airline had to inform the Securities and Exchange Commission that it was 'not in negotiations or discussions with any other airline regarding a merger, acquisition or similar strategic transaction.' Last month, United CEO Scott Kirby said that while the company would like to have a greater presence in New York, it was not ready to deal with all the regulatory hurdles. 'I would like to have a presence on the other side of the river at JFK (airport),' Kirby had said. 'But man, all the headache, all the brain damage of buying a whole airline to get there. That's a lot to do.'
Reuters
03-03-2025
- Business
- Reuters
American Airlines asks US Supreme Court to reverse ruling barring JetBlue alliance
March 3 (Reuters) - American Airlines (AAL.O), opens new tab has asked the U.S. Supreme Court to reverse a lower-court decision that found its now-scrapped U.S. Northeast partnership with JetBlue Airways (JBLU.O), opens new tab violated federal antitrust law. American Airlines in a petition made public on Monday asked the justices to review a decision in November by a Boston-based federal appeals court that upheld a trial judge's ruling blocking the airlines' "Northeast Alliance," which had allowed the two carriers to coordinate flights and pool revenue.
Yahoo
19-02-2025
- Business
- Yahoo
JetBlue still in talks with multiple airlines for partnership
By Doyinsola Oladipo NEW YORK (Reuters) - JetBlue Airways said on Wednesday that it is still in talks with multiple airlines to establish a partnership and is willing to allocate more funds to get a deal done. In November, the Boston-based 1st U.S. Circuit Court of Appeals sided with the U.S. Department of Justice in blocking the JetBlue and American Airlines' "Northeast Alliance," which had allowed the two carriers to coordinate flights and pool revenue. "When I look at the benefits that we got from the partnership we had, I think that's something that's attractive for us," JetBlue President Martin St. George told the audience at the Barclays 42nd Annual Industrial Select Conference in Miami, Florida. The biggest benefit of a partnership would be improving the utility of the company's loyalty points for customers which trails multiple competitors, he said. "If we find a deal that's accretive, we'll absolutely do it," St. George said, adding that the company is looking forward to letting the Northeast Alliance "play out in the original design." The Justice Department under the Biden Administration argued that the alliance would hurt consumers, saying the partnership eliminated incentives for American to cut prices to lure customers from JetBlue, a historically disruptive rival with often lower fares. St. George said there is money in its JetForward plan allocated for partnership but said if the number had to change, the company will provide a guide, adding that a financier would be good for the airline. The company said its JetForward initiatives included priorities to improve the company's reliability, network, product and financial future, targeting $800 million to $900 million for incremental EBIT through 2027. Sign in to access your portfolio
Reuters
19-02-2025
- Business
- Reuters
JetBlue still in talks with multiple airlines for partnership
NEW YORK, Feb 19 (Reuters) - JetBlue Airways (JBLU.O), opens new tab said on Wednesday that it is still in talks with multiple airlines to establish a partnership and is willing to allocate more funds to get a deal done. In November, the Boston-based 1st U.S. Circuit Court of Appeals sided with the U.S. Department of Justice in blocking the JetBlue and American Airlines' "Northeast Alliance," which had allowed the two carriers to coordinate flights and pool revenue. "When I look at the benefits that we got from the partnership we had, I think that's something that's attractive for us," JetBlue President Martin St. George told the audience at the Barclays 42nd Annual Industrial Select Conference in Miami, Florida. The biggest benefit of a partnership would be improving the utility of the company's loyalty points for customers which trails multiple competitors, he said. "If we find a deal that's accretive, we'll absolutely do it," St. George said, adding that the company is looking forward to letting the Northeast Alliance "play out in the original design." The Justice Department under the Biden Administration argued that the alliance would hurt consumers, saying the partnership eliminated incentives for American to cut prices to lure customers from JetBlue, a historically disruptive rival with often lower fares. St. George said there is money in its JetForward plan allocated for partnership but said if the number had to change, the company will provide a guide, adding that a financier would be good for the airline. The company said its JetForward initiatives included priorities to improve the company's reliability, network, product and financial future, targeting $800 million to $900 million for incremental EBIT through 2027. Make sense of the latest ESG trends affecting companies and governments with the Reuters Sustainable Switch newsletter. Sign up here.
